What is a cartel?
Collusion between competitors, commonly known as a cartel, is a secret agreement or a
concerted practice involving two or more undertakings aimed at restricting competition
between them, namely by fixing prices, sharing clients or markets, or allocating production
quotas; this allows the undertakings involved to control the market, to the detriment of
consumer welfare.
Article 9 of the Competition Act (Law No. 19/2012, of 8 of May) prohibits “agreements
between undertakings, concerted practices between undertakings and decisions by
associations of undertakings which have as their object or effect, to prevent, distort or
restrict, in a significant way, competition in the whole or part of the national market”.
Undertakings involved in cartels may be subject, among other sanctions, to fines of up to
10% of their annual turnover.
What is the Leniency Programme?
The Leniency Programme sets out a special legal framework for granting full or partial
immunity from fines in proceedings for infringement of competition rules under article 9 of
the Competition Act (Law No. 19/2012, of 8 of May) and article 101 of the Treaty on the
Functioning of the European Union.
In accordance with article 75 of Law No. 19/2012, of 8 of May, immunity from fines or a
reduction of fines shall be granted in administrative offence proceedings concerning
agreements or concerted practices between two or more undertakings, prohibited pursuant
to article 9 of Law No. 19/2012, of 8 of May and, if applicable, pursuant to article 101 of the
Treaty on the Functioning of the European Union, where such agreements or practices are
aimed at coordinating their competitive behaviour on the market or influencing relevant
parameters of competition, specifically through the fixing of purchase or selling price or
other trading conditions, the allocation of production or sales quotas, the sharing of
markets, including collusion in auctions and bid-rigging in public procurement, restrictions
on imports or exports or anti-competitive actions against other competitors.
What happens if an undertaking applies for leniency?
The Leniency Programme sets the conditions undertakings will have to satisfy in order to
qualify for leniency when reporting to the Competition Authority any agreements and
concerted practices in which they are or have been involved; subject to evaluation,
undertakings may be granted full immunity or a reduction not exceeding 50% of the total
amount of the fine.
How can you benefit from the Leniency Programme?
If you are aware of a cartel, please pay attention to the Leniency Programme.
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